Regulatory Reporting Dashboard
-
Upload
accenture -
Category
Economy & Finance
-
view
825 -
download
0
Transcript of Regulatory Reporting Dashboard
Regulatory Reporting DashboardJanuary, 2017
2
Table of Contents
Copyright © 2017 Accenture All rights reserved.
Dashboard Summary
Financial Reporting Process Capability Model
High Performance Regulatory Reporting Framework
Regulatory Reporting Dashboard3
4
5
6
What is a Dashboard? 7
Dashboard Development Process 8Identify Capabilities for Improvement 9
Develop Operational Metrics 10
Develop Operational Metrics – Sample
11
Gather Dashboard Data Requirements
12
Develop, Test, Implement 13
Accelerators 14
Developed Comprehensive Capital Analysis and Review Metric - Example
15
3Copyright © 2017 Accenture All rights reserved.
• Transparency into data and information• Monitor improvements in data quality• Timely and inaccurate report outputs• Manual sourcing of information and straight
through processing
• Measure current operations• Document and monitor improvement and change• Track to business objectives• Make quick business decisions based on key
ratios
With the new and the ever complex external reporting landscape, financial institutions are faced with a variety of challenges to monitor their process:
Consequently, they require a solution to gain insight to approved information and provide improvement over time:
Dashboard SummaryThe financial reporting frameworks and enhancement process capabilities are being reconsidered across the financial services industry to address an evolving and dynamic regulatory environment.
Accenture offers an Internal and External Regulatory Reporting Framework with a wide variety of offerings to aid clients in solving new and complex challenges with solutions that focus on data quality, data sourcing and centralized capabilities that can creating efficiencies within the process.
4Copyright © 2017 Accenture All rights reserved.
High Performance Financial Reporting FrameworkConsolidating internal and external frameworks, processes, and technology can create efficiencies across reporting functions.
Reporting: External / Internal • Same data can be used to populate reports
across the regulatory landscape and for internal purposes, thus reducing redundant activities
Reporting: MIS / Shareholders • Reporting results become more accurate and
financial results can be produced fasterReporting: Functions• Cross function transparency is created
allowing for dynamic integration of new systems
Brok
er D
eale
rAs
set M
anag
emen
tIn
sura
nce
Capi
tal M
arke
tsBa
nk
Reporting Regulatory (External) OCCFDICNCUA
FRBSECCFTC
CFPBFHFAFINRA
NAICESFSBasel
FunctionsRisk
TreasuryFinance
Human ResourcesControl
Line of BusinessExternal Data
(Market)Legal
Process: Workflow and Requirements• Straight through processing of information
across all systems to meet reporting needs
Support: Organization• Overarching controls and governance to
manage risk and well communicated roles and responsibilities
Support: Technology• Seamless user experience to investigate,
manage risk, and create new information and data
Benefits of Consolidation
Internal Management Information System (MIS) and ShareholdersInformational
Sr. ManagementOperations
Board Actuals Forecasting
Support Organization TechnologyWorkflow ModelingPolicy
TrainingRCSA
ProceduresResource Location
AuditBusiness Rules Performance
Metrics
Calculators AggregationWeb Services Reporting Engine
Technical Rules Batch Management
Process Workflows and RequirementsSourcing
and Validation
Reconciliation
Adjustments
Transformation Distribution
Data Manageme
ntInvestigation and AnalysisSecurity / Audit / Controls
Note: Please see Legend slide for definition of acronyms
5Copyright © 2017 Accenture All rights reserved.
Financial Reporting Process Capability ModelAccenture’s standardized regulatory reporting process capability model helps accelerate the assessment of process capabilities, and implementation of an operational dashboard to monitor improvement across the reporting framework.
Core Workflows and Requirements Supporting Workflow and Requirements
Note: Please see Legend slide for definition of acronyms
Level 1 Level 2 Level 3Level 3 – Sub-Category
Security / Audit / Control
Sourcing and Validation
Policy / Procedures
Quality Control
EntitlementsData Sourcing Controls
Retention and Archiving Validation Rules
Quality Assurance
SecuritySourcing
ControlsBusiness
RCSAException Tracking
SOXMetrics
Operations
Audit
Reconciliation
Break Thresholds
Research
Mapping to General Ledger
Cross Report
Resolution
Data Management
Data Quality
Metadata ManagementLineage andTraceability
Restatement
Data Governance
Data Approval
Controls
Data Accuracy
Rule Conformation
Datasets
Versioning
Report Preparation
External
Drill DownVariance Commentary
Internal
Data Mapping
Regulatory ThresholdsAttestation
Escalation CriteriaEscalation TrackingReport Submission
Capital Thresholds / Materiality
Adjustments
Transaction
Manual Upload
Adjustment Inventory
Adjustment Approval
Aggregated Data MaskingTechnical
Transformations
Model Definition /Enhancement
Pro Forma
Formulas
Error Resolution
Report Changes / Maintenance
Calculations
Derivation Rules
AggregationAggregation RulesModel GovernanceModel Approval
Derivations
Investigation and Analytics
CannedOperational Dashboard
Reports
Ad Hoc
Analytics
Performance
Market
Risk
Capital Management
Capital Results Narrative
6Copyright © 2017 Accenture All rights reserved.
Regulatory Reporting Dashboard
Standard dashboard components measuring the effectiveness of data processing, improvement over time and tracking to key business reporting objectives.• Increase
automation • Improve report
accuracy• Improve data
quality • Reduce time to
change• Reduce manual
data
Accenture Regulatory Reporting OfferingsAccenture has developed a set of seven key regulatory offerings to tackle current challenges in the regulatory reporting space.
Des
crip
tion
Valu
e Pr
opos
itio
n
Data Quality Management
Develop standard data quality management operating model (framework) for the identification, investigation, and resolution of data quality issues.
• Improve data quality
• Improve report accuracy
• Improve data quality
• Reduce regulatory actions
User Tool Assessment Approach
Develop an approach for the assessment of manual tools for determining a tactical and strategic elimination strategy.
• Increase automation
• Improve report accuracy
• Reduce manual data
CapabilityDesign and Data SourcingDevelop and design reporting processes and capabilities. Document key steps for data processing, populating reports and collecting key reporting data attributes.• Improve
governance • Increase data
transparency• Reduce risk • Improve time to
report
Integrated Reporting Tool Set ImplementationFramework outlining the standard process, capabilities and technology components required to streamline reporting and centralize finance data for straight through processing. • Increase
automation • Improve report
accuracy • Improve staff
usage• Reduce manual
data
Target OperatingModel and GovernanceCreate target operating model and governance structure for regulatory reporting capability to allow for clear roles and responsibilities, ownership, process documentation, and governance.• Increase
ownership • Improve
governance• Reduce redundant
processes and controls
RegulatoryReporting VendorImplementation Support a client’s implementation of regulatory reporting tools through vendor selection, business and functional requirement gathering, tool configuration, and testing / go live support.• Increase
automation and functionality
• Improve report accuracy
• Reduce manual controls
7Copyright © 2017 Accenture All rights reserved.
What is a Regulatory Reporting Dashboard?A dashboard creates insight into the current processing of data for report population and supports the trending and measurement of data improvement and efficiencies over time.
Illustrative Dashboard
View
Sourcing• Attendance
Tracking • Validation Errors • Exception
Processing
Transformation• Logic Accuracy • Core Data
Acceptance
Data Management• Governance
through the Reporting Workflow
• Control Monitoring
Report Preparation • Dataset
Completion Tracking
• Approval / Attestation
Adjustments• Workflow status • Reconciliation
Breaks • Data Errors • Adjustment
Tracking
• Monitor improvement to adjustments from:• Sourcing issues• Validation errors• Reconciliation breaks• Transformation outputs
• Identify process / capability slow downsDecision Tool (Metrics Insight)
• View key ratios during construction for informing quick business decisions
• Capital management ratios• Balance sheet • Income statement• Pro forma
Quality Control Tool (Issue Improvement)
Cost Reduction Tool
• Transparency into the integrated process• Analyze people and data performance • Process audit quality assurance / quality
control• Attestation monitoring sign-offs and other
controls• Consistency with other reporting
Management Tool (Operational Monitoring)
Reduce Reporting Costs by:• Proactively enhancing process and
supporting capabilities• Reducing regulatory actions / response• Improving governance and reducing risk• Reducing data quality issues and
associated overhead
8Copyright © 2017 Accenture All rights reserved.
Regulatory Reporting Dashboard Development ProcessDashboard development begins with the assessment of target state business goals driving the development of the dashboard.
Define “Success” Measures
Del
iver
able
sAc
tivi
ties
• Final dashboard• Data requirements
• “Success” measures matrix
• Operational measures matrix
• Current state workflows
• Target state workflows
• Prioritization• Roadmap
• Conduct stakeholder interviews
• Document current and target state
• Identify areas of opportunity
• Develop roadmap for change
• Review vendor solutions
Activity Metrics: • Define the
measurement of the reporting process
Effectiveness Metrics: • Track the
effectiveness of the activity metrics over time
Results Metrics: • Measure
“success” against target state
• Reduce errors and decrease time to report
Gather Requirements: • Business logic• Business terms
and definitions • Physical data• Analyze • Data sourcing
gaps • Enhance • Tactical and
strategic sourcing solutions
• Develop final dashboard
• Document testing plan
• Execute testing• Implement final
dashboard
Identify Capabilities
for Improvement
Develop Operational Metrics
Gather Dashboard Data Requirements
Develop, Test, Implement
9Copyright © 2017 Accenture All rights reserved.
Regulatory Reporting Dashboard – Identify Capabilities for ImprovementAssessment of capabilities helps identify key areas for improvement, target tactical and strategic objectives, and prepare roadmap for change.
Document Current and Target StateDocument the current state work flows to facilitate the construction of a target state documenting key controls, key performance indicators (KPIs) and service level agreements (SLAs) required in the process.
DiscoveryReview current work documentation, policies, procedures, and associate artifacts. Conduct discovery meetings with key stakeholders and areas.
Define Areas of OpportunityIdentify areas of opportunity based on observations in the current state. Develop categories and themes to prioritize opportunities meeting organization needs.
Develop Roadmap for ChangeOrganize opportunities into meaningful work streams and build timelines to meet tactical (quick wins) and strategic objectives.
Review Vendor SolutionsDevelop requirements as a result of the target state process design to facilitate the evaluation of a vendor solution.
Define “Success” Measures
Identify Capabilities for Improvement
Develop Operational Metrics
Gather Dashboard Data Requirements
Develop, Test, Implement
10Copyright © 2017 Accenture All rights reserved.
Regulatory Reporting Dashboard – Develop Operational MetricsDashboards should contain three types of metrics to provide foresight, insight and hindsight into operations and results.
Remediation
Foresight
Insight
Hindsight
New Issue
Issue Analysis
Activity Metrics:Measurement of current status via Dashboard
Effectiveness Metrics:Measurement of change over time via Dashboard
Result Metrics:Measuring “success” against target state goals
Cleansing
Transformation
Sourcing
Approval
Distribution
Define “Success” Measures
Identify Capabilities for Improvement
Develop Operational Metrics
Gather Dashboard Data Requirements
Develop, Test, Implement
Change in Data Accuracy
Improvement in Reconciliation
Transformation Outputs
Change in Bus. Metrics (e.g. Risk-Weighted Assets / Capital Ratios)
Reduced Reporting Cost
Improved Report Accuracy
Streamlined Data Processing
Reduced Manual Intervention
Managing Data Quality
11Copyright © 2017 Accenture All rights reserved.
Regulatory Dashboard – Develop Operational Metrics Dashboards should contain three types of metrics to provide foresight, insight and hindsight into operations and results.
Sample Metrics Foresight Insight HindsightMeasurement of Current StatusData Sourcing / Processing Status Validation / Transformation / Reconciliation / Adjustment Status Variance Commentary and Data Approval Status Data Readiness / Reporting Tool Data Distribution Status Measurement of Change Over TimeData Sourcing SLA / Technical and Business Validation Exception Trends (on sourced, adjusted, transformed data) Adjustment Trends (by product, line of business (LOB), etc.) Reconciliation Break Trends Transformation Model Performance (e.g. calculation error trending) Time To Approve Data (cleansed data) Timing Integrated Process (sourcing to report distribution) Measurement of “Success” Against Target StateImprove Report Accuracy Reduce Reporting Costs Reduce Manual Intervention Improve Managing Data Quality
Define “Success” Measures
Identify Capabilities for Improvement
Develop Operational Metrics
Gather Dashboard Data Requirements
Develop, Test, Implement
Illustrative Sample
12
Regulatory Dashboard – Business Metrics – Comprehensive Capital Analysis and Review (CCAR) 14Q-A A CCAR dashboard could contain key attributes that provide real-time information as metrics are being developed for decisions.
Copyright © 2017 Accenture All rights reserved.
Attestation Deficiency CategoriesError Thresholds are based on Bank Holding Company Severely Adverse Stressed Capital Ratios
Impact (%) Impact ($) Impact (bps)Impact to Tier 1 CapitalHigh > 2.5% > $1 bn > 20 bpsMedium 1.75-2.5% $0.75-1 bn 15-20 bpsLow 1-1.75% $0.5-0.75 bn 10-15 bpsBeneath Thresholds < 1% < $ 0.5 bn < 10 bpsImpact to Total RWAHigh > 2.5% > $12 bn > 30 bpsMedium 1.75-2.5% $9-12 bn 20-30 bpsLow 1-1.75% $5-9 bn 10-20 bpsBeneath Thresholds < 1% < $ 5 bn < 10 bpsImpact of Total AssetsHigh > 2.5% $19 bn > 12 bpsMedium 1.75-2.5% $13-19 bn 10-12 bpsLow 1-1.75% $8-13 bn 5-10 bpsBeneath Thresholds < 1% < $ 8 bn < 5 bpsImpact to Total Supplementary Leverage Ratio (SLR) Average AssetsHigh > 2.5% $28 bn > 10 bpsMedium 1.75-2.5% $20-28 bn 6-10 bpsLow 1-1.75% $11-20 bn 3-6 bpsBeneath Thresholds < 1% < $ 11 bn < 3 bps
Define “Success” Measures
Identify Capabilities for Improvement
Develop Operational Metrics
Gather Dashboard Data Requirements
Develop, Test, Implement
This is an example using fictitious data points.
Illustrative Example
13Copyright © 2017 Accenture All rights reserved.
Regulatory Dashboard – Gather Dashboard Data RequirementsData should be defined, gathered, analyzed and enhanced to help maintain accurate and impactful dashboard results.
Define Gather
AnalyzeEnhance
1 2
4 3
Validate
Validate
Validate
Valid
ate
Define Dashboard Purpose • Define a business need for the
dashboard (e.g. regulatory response, data governance, reduced operating costs, or risk reduction).
• Develop a business use (e.g. enhanced analytics, traceability, adjustments to data, improved data quality, report accuracy).Enhance Performance
• Develop tactical and strategic sourcing solutions to address identified gaps.
• Put an evergreen process in place to help govern future data changes.
Gather Data Requirements • Outline system flow to organize a
detailed collection of data from the providing systems.
• Define business attributes (Names and definitions) to map from a target to a source system.
• Collect physical data attributes to facilitate the population of report / dashboard.Analyze Data
Requirement Gaps• Identify data sourcing gaps to
populate report / dashboard.
• Validate business and technical data to help maintain accuracy.
Define “Success” Measures
Identify Capabilities for Improvement
Develop Operational Metrics
Gather Dashboard Data Requirements
Develop, Test, Implement
14Copyright © 2017 Accenture All rights reserved.
Design Backlog
Regulatory Dashboard – Develop, Test, ImplementStandard development practices allow for the timely implementation of a new dashboard.
Note: Please see Legend slide for definition of acronyms
Define “Success” Measures
Identify Capabilities for Improvement
Develop Operational Metrics
Gather Dashboard Data Requirements
Develop, Test, Implement
Plan Define Analyze Improve Control
Business Goals• Project scope
defined• Project charter
developed• Business case
created
High Level Requirements• Process maps as
inputs• Data attributes as
inputs• High level functional
requirements as inputs
1Workstream InitiationCreate workstream charter.
Conduct Assessment Identifying risks, estimating effort, and determining required skillsets.
Develop Iteration Plan
2
Design Backlog
Design 1Design 1 Feature
Set
2
Design 2Design 2 Feature
Set
4
4Design 2Design 2 Feature
Set
Deve
lop
1
Deve
lop
2
Deve
lop
3
SIT
UAT
Design Iteration Development IterationIteration Review
3
Define Tollgate
Design Sub-tollgate
Improve Tollgate
Cross-functional business, technology and change teams are assembled to begin high-level scope and requirements gathering.
1Scope is divided in feature sets. User stories/reqs. are documented and prioritized into design iterations.
2Prototypes are developed and tested with business leads to validate requirements. 3Validated requirements are entered into the development backlog for development iterations. Prototypes are used in conjunction with reqs in build.
4
15Copyright © 2017 Accenture All rights reserved.
Regulatory Dashboard – Accelerators Accenture’s previous experience in project execution and development of operational dashboards has resulted in many accelerators to help quickly organize and execute.
Implementation Planning Methodology
Functional and Technical Requirements Practices and Tools
Standardized Dashboard MetricsStandard Reporting Capability Model
Vendor Assessment Scorecard and Methodology
Predefined Requirements Gathering Methodology
Follows a methodology based on criteria derived from industry requirements in order to facilitate planning.
Supports the technical / functional requirements for project planning.
Assessment tool provides questions and analysis instruments to be applied according to the firm’s priorities and requirements.
Predefined operational and business results metrics developed through industry experience.
The framework to assess and develop solutions for an improved regulatory reporting process.
Templates and prior experience, sourcing information for report population.
16
Legend
Copyright © 2017 Accenture All rights reserved.
CFPB: Consumer Financial Protection BureauCFTC: U.S. Commodity Futures Trading CommissionESFS: European System of Financial SupervisionFDIC: Federal Deposit Insurance CorporationFHFA: Federal Housing Finance AgencyFINRA: Financial Industry Regulatory AuthorityFRB: Federal Reserve BoardNAIC: National Association of Insurance Commissioners
NCUA: National Credit Union AdministrationOCC: Office of the Comptroller of the CurrencyRCSA: Risk Control Self AssessmentSEC: U.S. Securities and Exchange CommissionSIT: System Integration TestingSOX: Sarbanes-Oxley ActUAT: User Acceptance Testing
17
Regulatory Reporting Dashboard
Copyright © 2017 Accenture All rights reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture.
Disclaimer This presentation is intended for general informational purposes only and does not take into account the reader’s specific circumstances, and may not reflect the most current developments. Accenture disclaims, to the fullest extent permitted by applicable law, any and all liability for the accuracy and completeness of the information in this presentation and for any acts or omissions made based on such information. Accenture does not provide legal, regulatory, audit, or tax advice. Readers are responsible for obtaining such advice from their own legal counsel or other licensed professionals.
About AccentureAccenture is a leading global professional services company, providing a broad range of services and solutions in strategy, consulting, digital, technology and operations. Combining unmatched experience and specialized skills across more than 40 industries and all business functions—underpinned by the world’s largest delivery network—Accenture works at the intersection of business and technology to help clients improve their performance and create sustainable value for their stakeholders. With more than 394,000 people serving clients in more than 120 countries, Accenture drives innovation to improve the way the world works and lives. Visit us at www.accenture.com